1. Classical economists believe that

a) the long run aggregate supply (LRAS) curve is horizontal

b) prices, wages and interest rates are flexible

c) the economy is self-correcting

d) both b and c

2. keynesian economists believe that

a) the aggregate supply (AS) curve is vertical

b) the economy can be stuck in an equilibrium position at production levels below full employment GDP

c) consumer spending will increase during recessions

d) the economy will always move toward full employment GDP

3. In dealing with the "great recession", the obama administration has largely followed the policies of ____________

a) classical Economists b) keynesian Economists c) monetarists d) none of the above